MURDOCH UNIVERSITY
MBS544 ACCOUNTING PROCESSES
LECTURE 2 WORKSHEET
Question 1
Simpsons Ltd had the following balances in their accounts for the financial year
ending 30 June 2018 before year-end adjusting entries.
Account Dr. Cr.
Accounts receivable 1,050
Cash 64,050
Deposit 2,000
Office furniture 25,000
Stationary supplies 1,500
Service revenue in advance 3,000
Share capital 80,000
Dividends 250
Service revenue 13,450
Electricity expense 100
Rent expense 1,200
Salary expense 1,000
Telephone expense 300
96,450 96,450
Simpsons Ltd had the following adjusting entries to be included in their financial
reports:
1. Straight-line depreciation on office furniture costing $25,000 with useful life
of 10 years.
2. Stationary supplies on hand were $500.
3. Invoices for June for electricity $180 and telephone $200, were received and
paid for in July.
4. Services performed but not invoiced at 30 June totaled $300.
5. Revenue received in advance of $700 was earned in this period.
Required:
1. Journalise these transactions in the General Journal provided below. Provide
brief narrations.
2. Prepare an adjusted trial balance for Simpson Ltd in the space provided
below.
3. Journalise the closing entries for Simpsons Ltd at the end of the financial
year.
4. Prepare a post-closing trial balance at 1 July 2018.
Page 1 of 5
GENERAL JOURNAL
Date Particulars Debit Credit
ADJUSTING ENTRIES
June 30 Depreciating Expenses 2,500
Accumulated Depreciation 2,500
Stationery Supplies Expenses 1,000
Stationery Supplies 1,000
Electricity Expenses 180
Telephone Expenses 200
Electricity Payable 180
Telephone Payable 200
Accounts Receivable 300
Service Revenue 300
Revenue Received in Advance 700
Service Revenue 700
Page 2 of 5
Simpsons Ltd
Adjusted Trial Balance
Stationary supplies 1,500.00 1,000.00 500.00
Service revenue in advance 3,000.00 700.00 2,300.00
Share capital 80,000.00 80,000.00
Dividends 250.00 250.00
Service revenue 13,450.00 1,000.00 14,450.00
Electricity expense 100.00 180.00 280.00
Rent expense 1,200.00 1,200.00
Salary expense 1,000.00 1,000.00
Telephone expense 300.00 200.00 500.00
Depreciating Expenses 2,500.00 2,500.00
Accumulated Depreciation 2,500.00 - 2,500.00
Stationary supplies
1,000.00 1,000.00
Expenses
Electricity Payable 180.00 180.00
Telephone Payable 200.00 200.00
96,450.00 96,450.00 4,880.00 4,880.00 99,630.00 99,630.00
Page 3 of 5
GENERAL JOURNAL
Date Particulars Debit Credit
CLOSING ENTRIES
Service Revenue 14450
Profit or loss Summary 14450
Profit or loss summary 6480
Electricity Expenses 280
Rent Expense 1200
Salary Expenses 1000
Telephone Expenses 500
Depreciation Expenses 2500
Stationery Supplies
1000
Expenses
Profit or loss summary 7970
Retained Earning 7970
Retained Earnings 250
Dividend 250
Page 4 of 5
Post-closing Trial Balance
Simpsons Ltd
as at 1 July 2018
Account Dr Cr
Accounts Receivable 1,350
Cash 64,050
Deposit 2,000
Office Furniture 25,000
Stationery Supplies 500
Service Rev in Adv 2,300
Share Capital 80,000
Retained Earning 7,720
Acc Depreciation 2,500
Electricity Payable 180
Telephone Payable 200
92,900 92,900
Page 5 of 5
